{"id":5174,"date":"2021-08-09T16:40:32","date_gmt":"2021-08-09T21:40:32","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/entrepreneur-definition.html"},"modified":"2026-04-28T13:42:00","modified_gmt":"2026-04-28T18:42:00","slug":"entrepreneur-definition","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/entrepreneur-definition.html","title":{"rendered":"What Is an Entrepreneur?"},"content":{"rendered":"\n
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What Is an Entrepreneur?<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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An entrepreneur takes an idea and creates a business around it. When launching and creating a business venture, an entrepreneur must:<\/p>\n

Identify funding sources:<\/strong> They can self-fund, get SBA loans, use angel investors or venture capital.<\/p>\n

Choose a legal entity:<\/strong> They must decide whether to act as a sole proprietor or alternatively form a corporation or LLC to protect their personal assets.<\/p>\n

Create a business plan:<\/strong> They should develop a blueprint for their management and business operations.<\/p>\n

Many entrepreneurs benefit from legal counsel to help them get started.<\/p>\n\n <\/div>\n\n\n\n

An entrepreneur is a person who runs their own business. Sometimes, an entrepreneur has a new business idea or wants to enter new markets. Most entrepreneurs are self-employed. They\u00a0start a business<\/a>\u00a0and assume the financial risk of failure.<\/p>\n

To fund a new venture, an entrepreneur may need to take out a business loan or look for an investor. Successful entrepreneurs keep most of the profits and rewards of the new business venture.<\/p>\n

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Understanding Entrepreneurship<\/h2>\n

Entrepreneurship is the action of creating a new business startup. The word \u201centrepreneur” is French. It’s from the French verb \u201centreprendre,” which means \u201cto launch” or \u201cto undertake.” Entrepreneurship involves much risk-taking. Typically, an entrepreneur operates as a\u00a0sole proprietorship<\/a>. As a sole proprietor, they are their own boss.<\/p>\n

Many entrepreneurs create a startup business because they have an innovative idea, innovative products, or new technology. They may see that consumers need products or services the market does not offer. In this way, they see business opportunities or types of businesses that others don’t. Other entrepreneurs will find a way of improving existing products or services.<\/p>\n

If successful, an entrepreneur can grow their startup into a successful business that they will run for years. In some cases, the entrepreneur may choose to sell the business eventually. By selling, they would take the profits from the sale rather than continue running the business.<\/p>\n

Funding a New Business<\/h2>\n

Entrepreneurs may sometimes have cash flow issues in the beginning. They will often need startup money for supplies, a place to do business, or other expenses. To cover these costs, entrepreneurs must either spend their own money or find different\u00a0ways to finance<\/a>\u00a0their business.<\/p>\n

They also need cash flow and annual revenue. Sometimes, an entrepreneur has investors to fund the new venture.<\/p>\n

Entrepreneurs often borrow from friends and family. They may also think about taking a short-term or long-term bank loan. But bank loans can be difficult for startup businesses to get. Financing may also be available from the Small Business Administration (SBA).<\/p>\n

Other ways to raise money might be to look for\u00a0venture capital<\/a>\u00a0or cash infusions from angel investors. Successful entrepreneurs may also use a credit card to fund their venture.<\/p>\n

When looking for investors, entrepreneurs should have a good\u00a0business plan<\/a>. Investors are more comfortable investing their money when a business plan shows the entrepreneur has the know-how to succeed.<\/p>\n

Forming a Startup Business<\/h2>\n

Aspiring entrepreneurs should also take the time to think about what\u00a0type of legal structure<\/a>\u00a0their business will have. Common choices for legal structures include limited liability companies (LLCs), partnerships, and corporations<\/a>. There are tax and liability reasons for business owners to choose one legal structure over the others.<\/p>\n

Become an Entrepreneur With Legal Help<\/h2>\n

You could be a success story if you focus on your entrepreneurship plan. Meeting with a lawyer can help you understand your options and how to protect your rights. Visit our\u00a0attorney directory<\/a>\u00a0to find a lawyer near you who can get your dream of owning a new business started.<\/p>\n

Ready To Become an Entrepreneur?<\/h2>\n

A\u00a0successful entrepreneur\u00a0is a risk-taker. They need stamina and passion to run their day-to-day operations. Here are some useful articles that can help you decide if\u00a0entrepreneurship is right for you<\/a>.<\/p>\n